Many expected Greece to default on its borrowings and even exit the European Union (EU) and the Euro Zone. Much of its bailout money came from the EU and the International Monetary Fund (IMF). Instead, after recent parliamentary election victory by the far-leftist party, Syriza and the new government in Greece is launching a new campaign to renegotiate its loans. Syriza party leader, Alexis Tsipras sworn in as Greece’s new Prime Minister on January 26, 2015.
The new government in Greece started campaigning for relief from debt and unpopular austerity measures required by the EU. The EU cannot afford a Greek exit from its Union or the currency at this time. Even though more powerful EU member state, Germany insist on Greece paying back its loans, they may have to work together to find a solution for the current crisis. The history is on Greece side. After the World War II, the Europe learned a hard lesson that a government cannot pay its total debt and still expects to recover. Much of the population in Greece is feeling the pinch of EU austerity measures and loss of jobs it created and they support the new government’s efforts for relief from over burdening debt and austerity measures.